Tss 2025 Q1 Earnings Record Net Income Soars 19760%

Tss (TSSI) reported its fiscal 2025 Q1 earnings on May 15th, 2025. The total revenue of Tss increased by 522.7% to $98.96 million in 2025 Q1, up from $15.89 million in 2024 Q1. Tss maintained stable EPS at $0.13 in 2025 Q1 compared to 2024 Q1. The company set a new record high for fiscal Q1 net income, the highest in 3 years. The results exceeded market expectations, driven by significant gains in the Procurement and Systems Integration segments, particularly from AI rack integration services. The company projects sustained growth with an optimistic outlook for the remainder of 2025, expecting H1 revenue to surpass H2 of 2024 and Adjusted EBITDA to rise significantly.

Revenue

The total revenue of Tss increased by 522.7% to $98.96 million in 2025 Q1, up from $15.89 million in 2024 Q1.

Earnings/Net Income

Tss maintained stable EPS at $0.13 in 2025 Q1 compared to 2024 Q1. Meanwhile, the company's profitability strengthened with net income of $2.98 million in 2025 Q1, marking 19760.0% growth from $15000 in 2024 Q1. The EPS appears stable, reflecting consistent performance.

Price Action

The stock price of Tss has dropped 3.69% during the latest trading day, has surged 20.52% during the most recent full trading week, and has surged 20.84% month-to-date.

Post Earnings Price Action Review

The strategy of buying TSSI shares after their revenue drop on the financial report release date and holding for 30 days resulted in a 20.59% return over the past 5 years, underperforming the market by 0.84 percentage points annually. Despite this underperformance, TSSI demonstrated resilience with a market capitalization of $2.52 billion, navigating a peak-to-trough decline of 42.2% following the revenue drop. The shares eventually recovered, achieving a 20.59% return from the initial drop. This approach underscores the significance of managing risk and capitalizing on post-revenue-drop momentum, although the returns indicate that it may not have consistently outpaced the broader market.

CEO Commentary

Darryll Dewan, CEO of TSS, Inc., emphasized a strong start to 2025, highlighting a 523% increase in revenue and a significant improvement in diluted EPS to $0.12 compared to breakeven in the previous year. He attributed this growth to robust performance in the Procurement and Systems Integration segments, bolstered by AI rack integration services. Dewan expressed confidence in their operational excellence and innovation, positioning TSS to leverage upcoming opportunities. He noted the completion of production at their new facility, which enhances capacity and positions the company favorably in a strong industry outlook, fostering optimism for continued growth.

Guidance

TSS, Inc. anticipates revenue in the first half of 2025 to surpass that of the second half of 2024, with a forecast for Adjusted EBITDA to be at least 50% higher than in 2024. Dewan indicated expectations for accelerating revenue from AI rack integration services beginning in Q2 and emphasized a solid operational foundation, aiming for substantial production volume growth throughout 2025 and into 2026.

Additional News

In recent weeks, TSS, Inc. announced significant strategic moves, including the initiation of production at a new facility on May 7, 2025, which significantly enhances their data center rack integration capacity. This expansion underscores the company's commitment to meeting the rising demand for AI-enabled technologies. Additionally, TSS has secured new debt financing to further support this growth, ensuring an expanded power infrastructure to accommodate future needs. These developments highlight TSS's proactive approach to scaling operations and strengthening its market position in the AI and high-performance computing sectors. The company also participated in the 20th Annual Needham Technology, Media, & Consumer Conference, showcasing its leadership in IT hardware and software integration.